If the deficit is 0.02 times GDP, the existing debt/GDP ratio is 0.5, and the growth rate of nominal GDP is 0.03, then the change in the debt-GDP ratio is
a. +0.05
b. -0.025.
c. 0.0
d. +0.025.
Answer: A
If the deficit is 0.02 times GDP, the existing debt/GDP ratio is 0.5, and the growth rate of nominal GDP is 0.03, then the change in the debt-GDP ratio is
a. +0.05
b. -0.025.
c. 0.0
d. +0.025.
Answer: A
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